The bad news is the C-130E Autopilot appears to be broken. While AI piloting continues to work as before with only the MSFS induced Altitude error, the onboard autopilot will not hold altitude, and the Pitch Control Knob is mostly inop as is the Altitude Control switch.  The Window in the center of the Autopilot assembly displays left wing full deflection down, Rudder full deflection left and Elevator full deflection up.
BUT.... THE GOOD NEWS is that the PMS50/GTN 750 Autopilot now works correctly. And that is a big-time game changer.